2024 Housing Market Overview for Real Estate Investors
Dayton Real Estate Market 2024
Get insights about the 2024 Dayton real estate market to determine if it’s the best location for your next single-family or multi-family home investment.
Dayton Real Estate Market Trends and Statistics for Real Estate Investors 2024
Dayton is the fourth largest metropolitan area in Ohio, with a population of 815,000. It consists of three counties: Greene, Miami, and Montgomery. The city of Dayton is located in Montgomery County.
Dayton’s economy is driven by education, healthcare and aerospace. Dayton is home to universities and colleges like the University of Dayton, Wright State University, and Sinclair Community College. Major healthcare employers in the area include Premier Health Partners and Kettering Health Network. Aerospace employers in Dayton include Wright-Patterson Air Force Base, Lockheed Martin, and GE Aerospace.
The area has a rich cultural heritage, showcased by institutions like the Dayton Art Institute and the National Museum of the United States Air Force.
The Dayton real estate market is stable, and home prices are lower here than in larger cities. This makes Dayton an attractive entry point for beginner investors looking to test the waters.
If you’re looking to invest in the Dayton, Ohio, housing market, you should know that many homes here are older. Some of the housing stock in Dayton dates back 80 years or more. This means you must do thorough inspections, including sewage inspections if you plan to invest in the Dayton real estate market.
If you work with RealWealth, you’re in good hands. Our team manages over 1,200 rental resale homes in Dayton, operating with assembly-line efficiency.
Data Sources:
- www.census.gov
- www.deptofnumbers.com
- www.zillow.com
- RealWealth Property Team Data
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Dayton Housing Market Trends
A growing economy and housing shortage have created a competitive housing market in Dayton. More businesses are expanding or moving into the Miami Valley area, creating a strong demand for housing. But there’s a severe shortage of housing inventory. Based on Dayton Realtors’ June data, there was only a 1.3-month housing supply. This is a great opportunity for you as an investor, as prices in the area are still low.
Over the next five years, local communities plan to build or facilitate many new single-family developments and multi-family projects in the area, so now might be the best time to pounce on the red-hot market.
In the next sections, we’ll explore what makes the Dayton real estate market attractive for investors. We’ll examine home values and rent trends over the last year and a decade, providing insights into the area’s affordability and equity growth potential.
Dayton home values are more affordable than other U.S. markets.
Median Home Value
The data in this chart is based on the average single family home in Dayton and the United States as of August 2024.
Home prices in Dayton are significantly lower than the national average. As of January 2024, in Dayton, you could get a single family home for an average price of $217,750, 37% less than the national average.
While prices are affordable, the market is heating up. According to Dayton Realtors, home prices in Dayton were up 9% year-over-year in June 2024, reaching a median price of $255,000. This market hotness and economic stability are why Realtor.com ranked Dayton 13th in its Housing Market Rankings for Spring 2024.
Dayton rents are also affordable compared to the national average.
Median Monthly Rent
The data in this chart is based on the average single family home in Dayton and the United States as of August 2024.
Dayton’s average monthly rent in January 2024 was $1,237, 37.6% lower than the national average. While rents in Dayton have climbed a bit in the past year, they are still reasonable. According to Zillow’s Dayton rental market data, the median rent in the city increased by $100, or 10.5%, from $950 in August 2023 to $1,050 in August 2024. This is still well below the national average.
Dayton home values have been appreciating at a steady rate.
Median Home Value (2014-2024)
+110%
28%
Over the past decade, Dayton home values have skyrocketed by 110%. If you bought a home in Dayton for $100,000 in 2014, it would probably be worth $210,000 today. Dayton’s rate of home price appreciation surpasses the national average by 28.4%.
Since 2014, the Dayton metro area has seen a consistent annual home price appreciation rate of 8.58%. This signifies a seller’s market where demand outweighs supply.
A recent survey of 22 communities by the Dayton Daily News revealed that 17 of them saw the median sales price of a new home more than double between 2013 and 2023. Four of the communities they surveyed saw home price appreciation rates beyond 200%, and one of the communities saw a 400% rise in its median sale price, from $24,000 to $140,000 in the 10-year period.
But that wasn’t usually the case. Dayton was one of the hardest hit by the housing crash. In 2013, almost a quarter of homes in the area were underwater. But, due to the pandemic-fueled surge in home prices, the market has roared back to life.
Rents in Dayton have also been rising steadily.
Median Monthly Rent (2014-2024)
+54%
30%
Rents in Dayton have increased by 54% in the last decade. The average rent in the Dayton metro area has been growing at 4.93% annually. Dayton’s total rate of rent appreciation over the last decade surpasses the national average for the same period by 30.8%.
The Dayton real estate market has a strong rental demand. In the last year alone, rental prices increased by 10.5% or $100 compared to the previous year. The vacancy rate in the city is low at just 5%, and over 52% of households rent.
Dayton Population Trends
One of the most promising signs of a strong real estate market is population growth. In this section, we’ll discuss what’s happening in the Dayton metro area.
Dayton's population has been slowly growing
Population Growth
1.62%
79%
Dayton’s population growth has been modest. In the twelve years between July 2010 and July 2022, the metro area’s population grew by just 1.62% (0.16% per year). That’s much slower than the national average of 7.74% during the same period.
The Dayton metro area, consisting of Montgomery, Greene, and Miami counties, had a total population of 812,595 as of the 2022 Census and is estimated to reach 815,205 in 2024. However, each county has varying population densities. Montgomery County is Dayton’s most densely populated county, with 1,158 people per square mile. Greene County and Miami County have population densities of 404 and 265 people per square mile, respectively.
Experts believe Dayton’s affordable housing market will be a major draw for new residents in coming years as the cost of housing rises in many parts of the country.
Dayton Employment Trends
Another sign of a good place to invest in real estate is a strong economy. In this section, we’ll discuss what’s happening with jobs in Dayton.
Dayton has been experiencing some job growth.
Job Growth
8,000
2.1%
Dayton’s job market has been on a strong trajectory. Between November 2022 and November 2023, the area added 8,000 new jobs. That’s a growth rate of 2.07%, 23.5% above the national average for that period.
While the unemployment rate has been creeping up in 2024 (currently at 5.4%), the job market is stable. The main pillars of Dayton’s economy are automotive, education, aerospace, healthcare and defense.
The fastest-growing sectors of Dayton’s economy include leisure and hospitality, manufacturing, mining, logging and construction. In the six months between February 2024 and July, the leisure and hospitality sector grew from 39,100 jobs to 43,200. During the same period, the mining, logging, and construction sector grew to 15,600 jobs, up from 13,800 in February. Manufacturing saw a slight increase of 800 jobs, rising from 41,100 to 41,900 in those six months.
If you’re looking to invest in real estate in Dayton, you’re on the right track. Recent investments by companies like Joby Aviation, Honda/LG, and Intel are expected to create thousands of new jobs and drive substantial economic growth here. In Montgomery County, Joby Aviation Inc. plans to create 2,000 jobs. While in Fayette County, Honda/LG Solutions’ electric vehicle battery plant will add 2,200 jobs. Additionally, Intel’s semiconductor plant in Licking County (a 2-hour drive from Dayton) will create 3,000 jobs.
Why Invest in the Dayton Housing Market Today
Is the Dayton real estate market a good place to invest? The answer is yes. Considering the above information along with further research, let’s see what makes the Dayton metro area one of the best places to buy real estate in 2024.
1. Very affordable
The Dayton Ohio housing market is affordable compared to many other major cities. In fact, Dayton was recently ranked one of the top five most affordable housing markets in the U.S. Its median price of $255,000 is well below the national average. This affordability is why it has become a top destination for people looking to relocate.
Beyond housing, living expenses like healthcare and groceries are also cheaper in Dayton. The overall cost of living in Dayton is 6% lower than the national average.
2. Stable market with steady growth
If you’re an investor looking to invest in long-term rental properties, Dayton’s real estate market is perfect. There is steady demand for rental properties in the area, thanks to the presence of universities, military bases, and the expanding economy.
Over the last ten years, home prices in Dayton have witnessed a steady appreciation rate of 8.58% annually, and rent prices have grown by 4.93% per year. Steady appreciation rates and high rental demand point to a market that can withstand market fluctuations.
3. Recession-resilient employment market
One hallmark of a strong and resilient housing market is a well-diversified economy. You’ll see this in Dayton. The economy is diverse and supported by aerospace, manufacturing, and healthcare. It is home to Wright Patterson Air Force Base, one of the country’s major aerospace and defense employers (over 30,000 employees).
The Dayton metro area is also gaining strength in the high-tech sector, with companies like NCR Corporation, LexisNexis, and L3Harris Technologies based there.
Economic diversity means a stable job market, which you want to see as an investor. The Dayton metro area is also witnessing major development projects that will create thousands of new jobs. These include Joby Aviation’s new manufacturing facility, Honda/LG Solutions’ EV battery plant, and Intel’s semiconductor plant.
4. Strong cash flow potential
Dayton’s affordable housing market offers excellent cash flow potential. With a median housing price well below the national average, you can acquire properties at lower costs or even opt for multiple properties.
Not only are home prices lower, but the cost of maintaining the properties is also lower. You’ll be able to set lower rehab budgets, pay lower taxes and insurance in Dayton. This is good news if you’re a new investor, as you can enter the market with less initial capital and still get good returns.
While the Dayton real estate market might not have the same appreciation potential as some other markets like Cincinnati, there are still growth opportunities, especially in specific neighborhoods and surrounding towns seeing increased investments from businesses.
5. Strong rental market
Dayton’s solid rental market is partly driven by its large student population. It is home to several universities, including the University of Dayton (over 11,000 students enrolled) and Wright State University (also with over 11,000 students enrolled).
Over the last five years, rental rates in Dayton have surged. The area has seen the fourth-highest rent increase for one-bedroom apartments in the nation, with a 44.1% increase.
Supply-chain disruptions and reduced housing construction since the COVID-19 pandemic have led to fast rent price appreciation in the area. Yet, Dayton’s rents are much more affordable than the national average.
Newsworthy Building and Developments in Dayton
Planned developments help investors estimate how the value of investment properties in Dayton might change over time. Here are some notable projects in the works in the Dayton real estate market right now.
1. The Dayton Arcade
The Dayton Arcade, a historic landmark spanning two blocks in Downtown Dayton, has stood vacant for decades, but it is undergoing a massive transformation. This project phase will work on the vacant Centre City building, converting it into 200 apartments and completing the overall Dayton Arcade project. Dayton Arcade Partners LLC's $140 million project was awarded $14 million in state tax credits. Plans include 200 residential apartments, 53,000 square feet of retail and office space, a new 94-bed Hilton Garden Inn hotel, and an expanded Stop n’ Save grocery store. The broader $200 million Dayton Arcade revitalization is expected to create over 1,500 jobs and generate $800 million in investment, boosting the economy of Downtown Dayton.
2. The Delco
The Delco building, originally constructed in 1915, is undergoing a $100 million renovation. It was constructed as a second plant for the Dayton Engineering Laboratories Company (Delco) and was a key economic engine for Dayton until its abandonment in the 1980s. Crawford Hoying purchased the Delco building in 2019 and is now transforming it into a mixed-use development. Its 555,000 square feet will be converted into 160 market-rate apartments, 77,400 square feet of office space, 19,600 square feet of retail space, and a 482-space parking garage. It is one of the largest developments in the Water Street District of Downtown Dayton.
3. OnMain: Dayton’s Imagination District
OnMain is a joint venture between the University of Dayton and Premier Health. They plan to build an innovation district on the site of the former Montgomery County fairgrounds in Dayton. OnMain aims to be a collaborative space where people can work, live, and play. The 38-acre project will be built in three phases. Construction of the first building will start within the next three years, but the entire project might take up to 15 years to complete. The first phase is the construction of the 125,000-square-foot “Think Dayton Building.” This building will house the Digital Transformation Center, where businesses, academia, and government organizations can collaborate on digital engineering and technology. The second phase of the project will add new construction along Main Street, including retail spaces, housing, and offices. It will also restore the historic Roundhouse building and add a new plaza. The final phase will focus on filling the remaining 38 acres of the fairgrounds with housing, offices, and parking spaces. This phase could take a decade to complete.
4. Expansion of the Wright-Patterson Air Force Base
Wright-Patterson Air Force Base is undergoing significant expansion with several ongoing and completed projects. One of the recently completed projects is the $143 million, 255,000-square-foot Intelligence Production Complex III, the largest project in the base’s history. The facility includes cutting-edge workspaces and an advanced laboratory for the National Air and Space Intelligence Center (NASIC). One of the currently ongoing projects is Phase V of the Acquisition Management Complex. Wright-Patterson is adding a 214,000-square-foot facility to streamline Air Force Life Cycle Management Center (LCMC) operations. Another is the new 41,000-square-foot child development center, which will increase the base’s child care capacity by more than 30%, providing space for 200 additional children.
5. Dayton Riverfront
The Dayton Riverfront Plan is a collaborative project between multiple organizations to revitalize the city’s waterfront. Project partners include Five Rivers MetroParks, Miami Conservancy District, the City of Dayton, Montgomery County, Miami Valley Regional Planning Commission, Downtown Dayton Partnership, and others. The plan will leverage Dayton’s four main rivers (Great Miami, Stillwater, Mad, and Wolf Creek) to foster development and tourism in the greater downtown Dayton area. One of the major projects planned is the “Suns” riverfront project, which alone could cost $150 million. It includes the creation of a pedestrian bridge and park and the redevelopment of a section of downtown Dayton’s riverfront.
Best Places to Buy Investment Property in Dayton & Surrounding Areas
If you’re considering getting into the Dayton real estate market in 2024, here are some of the best places to find profitable investment properties in Dayton, Ohio and around the metro area.
1. Centerville
Centerville is a thriving community offering the best of both worlds: urban convenience and suburban charm. It is located just 20-30 minutes from Dayton. With a population of 26,000, Centerville is a desirable place to live and invest. It offers many shopping, dining, and entertainment options. It also boasts highly-rated public schools that attract families. These include A+ or A-rated schools like Centerville High School and nearby schools like the Dayton Regional STEM School, Dr. John Hole Elementary School, Bellbrook High School, and Weller Elementary School. Centerville is also near higher education institutions like the University of Dayton, Sinclair Community College, and Wright State University. The city boasts a financially stable and affluent population, with a median household income of $79,508, which is higher than the national median ($75,149). Part of its historic sector is also undergoing redevelopment called the Uptown Action Plan. It will improve traffic, parking, walkability, and provide retail, dining, and greenspaces. With its good schools, financially stable population, and closeness to Dayton, Centerville is a prime location for real estate investment. Photo credit: City of Centerville
2. Springboro
Springboro’s hot real estate market deserves your attention. Redfin gave it a Compete Score of 82. While the city's median home sale price ($365,000) is currently down 6.9%, homes are going pending in just 21 days. Springboro boasts a high-income population, with a median household income well above state and national averages. The city has a per capita income of $52,755 and a median household income of $111,934. It also has a highly educated population. Over 55% of adults in Springboro have at least a four-year college degree, master’s degree, MD, law degree, or even a PhD. This is significantly higher than the national average of 37.7%. A well-educated population is attractive to businesses, which could potentially drive further growth in the area. Photo credit: Stayin on Main
3. Kettering
Kettering is the largest suburb in the Dayton metro area, with a population of 57,862. It is also one of the most affordable markets in the metro, with a median home price of $220,000. This affordability fuels a highly competitive real estate market, where homes go pending in just 15 days. Kettering is home to the highly-rated Dayton Regional STEM School. Other nearby A or A+-rated schools include Centerville High School, Bellbrook High School, and Bellbrook Middle School. Major employers include Kettering Health, ACCO Brands, and the University of Dayton. While the median household income in Kettering ($69,818) is lower than the national average, it surpasses the state average.
4. Miamisburg
Miamisburg’s rich history, including its role in nuclear defense and space exploration, adds to its unique appeal. It was the site of the Mound Laboratory, which was involved in nuclear defense and space probe research and technology. Its proximity to Dayton (17 minutes) provides easy access to metro services, jobs and entertainment spots. Miamisburg has a thriving economy, with major employers including Kettering Medical Center Network, Miamisburg Board of Education, and Avery Dennison. The city also has a strong manufacturing industry and is home to the headquarters of Motoman, Verso Corporation (now Billerud Americas Corporation), and Dayton Superior. This area also attracts families with its excellent schools. The Miamisburg City School District is ranked third in the Dayton area for academic performance. Miamisburg’s housing market is competitive, with a Redfin Score of 69 and homes spending an average of 31 days on the market. The median home price is more affordable at $246,000, but prices are growing fast. The median home price in the city has grown by 5.8% in the last year.
5. Walnut Hills
Walnut Hills, in the Cincinnati metro area, just minutes from the University of Dayton, offers a prime investment opportunity. Investors in this area see consistent demand for housing from the university's students, faculty, and staff. Walnut Hills features a charming mix of historic homes and repurposed buildings. Its architectural styles include late 19th-century Queen Anne homes and early 20th-century brick architecture. Eden Park, a sprawling green space that spans multiple neighborhoods, is the centerpiece of Walnut Hills. The park houses the Krohn Conservatory, the Cincinnati Art Museum, and the Cincinnati Playhouse in the Park.
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